Bring ethical assets premium account in balance sheet and eradicate corporate corruption. how to?

Jayaraman Rajah Iyer 704, Sarangi, Lokpuram,
Thane, 400610, Maharashtra
jayar@ibcm.in
+919487390439
22 July 2019
Shri Narendra Modi,
The Prime Minister of India,
South Block, Raisina Hill 
New Delhi-110011
Dear Sir,
SUB: Bring Ethical Assets Premium Account in Balance Sheet
- And Eradicate Corporate Corruption. How to?
[1. Background - My work on Intangible: Brief insight -
Management - Only Two Process - Creative and Action Process -
Transformation Stages - Policies - Action on Policies - UNCAC -
Template for all Policy Documents 2.Ethical Asset Premium Account
- How to bring it into Balance Sheet: Case Study - 30 FPOs-40,000
Farmers - 3. Audit Profession - the slot in Corporate Atomic
Structure; 4. Recommendation]
1. Sir, I submit, Wish one may, Corporate have to offer but a Balance Sheet,
deny as one may wish, Balance Sheet remains a convoluted statement of
ineffectiveness? I refer to my work Return on Intangible: Measuring
Corporate Fiscal and Ethical Assets; CREAM Analytics of Policies, Practices
and People, copy of which was sent to you as acknowledged by Annexure 1
herein. My work is on Return on Intangible satisfying the three Laws of
Newton, bringing into forefront Newton’s second Law of Motion: Force =
mass x acceleration. In fact I consider Management is very simple as we just
move an object from one space to the other.

Ethical Assets in Balance Sheet
i. Return on Intangible is an equation where the Numerator is Action or
Inaction and the Denominator the Intangible. Intangible is the energy
base common for all be a potter or a nuclear scientist. That would remain
constant 1 for all. My work goes on to calculate for each task by each
individual with this formula, a binary value of action and inaction.
ii. Creative Process and Action Process: There are only two process in any
organisation. Creative Process and Action Process. Creative Process starts
with Zero and ends as a Substance of Quality. Every Substance of
Quality is identical in 6 stages of transformation starting from zero, be it
man-made or Natural. Be it an IPR or Diamond that may take 10,000
years or a baby just in 9 months, the process remains the same.
iii. The six stages of Transformation: The six stages of Transformation are as
related to pancha bhoota. It’s a linear expansion from one stage to the
other resulting in a Substance of Quality. One most interesting
observation is that space has only one element that is sound, is
corroborated by NASA’s Voyager spacecraft by capturing the sound
IBCM © Research /2 23

feedback in the year 2012-13. This has been what Vedic scriptures had
been clear about but denied by physicists as Ether, refusing to
acknowledge Sound in space?
iv. The six stages of transformation is connected to corporate management
by identifying each stage of a single Substance of Quality. A well
documented Substance of Quality provides the basis for Action Process.
Whereas the six stages of transformation during Creative process is
identical for all known substance created, Action Process is unique to the
specific substance that is related to.
v. A Policy Document is a Substance of Quality and therefore is a Tangible
Object. When we come across lack of a Policy Statement we tend to
create one that would go through the six stages
of Transformation. The best IMHO is UNCAC-
United Nations Convention Against Corruption.
This is a wonderful document - particularly two
Articles: Article 13 - Participation of Society
and Article 10 - Public Reporting. Article 13 is
done in advance and Article 10 done later,
Public reporting. This UNCAC template is the
significant differentiator that all Substance of
Quality be created with Article 10 and 13 incorporated.
vi. Article 10 - Public Reporting whether it is Government or Corporate goes
by Newton’s First Law: An object remains in the state of rest or motion
unless acted upon by force. By not applying Article 10 - Public
Reporting, we fail to notify as to the Action Process of very many Policies
we come out with. The failure is because of not recognising a Policy
Document as a Tangible Object unlike a chair or a laptop or a
machinery. What happens to the Policy Document created and floated
be it UNCAC or Code of Conduct remains a mystery whether it is in a
state of rest or in motion? To quote Richard Murphy in a OECD anti-
bribery initiative a Read, Laughed and Filed Code ? My work brings into1
forefront such a Policy Document as a Tangible Object and gets it
accommodated in a Balance Sheet. Then, many a corporate and banking
problem gets resolved.
My work simplifies the tracking process by Return on Intangible. With respect to
Corporate I submit the following:
Mr. Joseph E. Murphy (Corporate Compliance and Ethics Professional): Review of the OECD anti-bribery1
instruments: compilation of responses to consultation paper:31 March 2008

Ethical Assets Premium Account:
2. I am currently involved with Project
FISCAL - Rating: FARMER- INDUSTRY
- SOCIETY & CONSOLIDATE - AGRI -
LEADERSHIP - Return On Intangible,
as per Annexure 2.
i. CREAM Report is applied to a
Farmer. A Farmer is better equipped in Ethical Responsibility than a
Corporate Manager. About 1000 Farmers each contributing Rs.1000
join and form an FPO. There are 30 FPOs of 40,000 Farmers, in my
case study.
ii. The Share capital for each FPO is about Rs.10 lakhs.
iii. I shall be applying under Management Quality in CREAM Report a
number of Policy Strategies adopted by each FPO connected to
individual Farmer. UNCAC, Agri Codex, Code of Business Principles
etc. UNCAC is the benchmark containing the best practices.
[Management Quality is a repository of various policy documents for
a company - mandatory as well as non-mandatory.]
iv. These Policy Documents would form part of Ethical Assets. UNCAC
is valued at a Notional Value of Rs.1 crore. This Notional Value is
applicable only by usage. By Return on Intangible every Action and
Inaction are calibrated. For example, when UNCAC is effectively
implemented, subject to CREAM Report Rating System, fully at an
optimised level of 5 then this entry would be passed:
- Dr. Ethical Assets ₹ 1 Crore,
- Cr. Ethical Assets Premium Account ₹ 1 Crore.
v. This entry arises out of ACTION Process. The Rating System is 0 to 5.
The Ethical Assets Premium Account would be credited according to
the ratings obtained. It could be zero or it could be ₹ 1 Crore. When
the UNCAC document is just mentioned but doesn’t move beyond
their Vision statement, Dr. And Cr. entry would be zero. The CREAM
Ratings go by Individual Return on Intangible [RoI] meaning each
CREAM REPORT
1. C – Corporate Governance
2. R – Risk Management,
3. E – Earnings – split into i. P&L
and ii. Balance Sheet
4. A – Accounting Quality
5. M – Management Quality

clause under UNCAC is checked as to Action taken by each
individual. My Book details how the bottom-up approach is taken
into account in evaluating the Action Process. Annexure 3.
vi. Let us say there are 3 such Ethical Assets adopted by an FPO, then for
each FPO the value obtainable is ₹3 Crore. For this FPC where 30
FPOs form part of the alliance the valuation under Ethical Assets
Premium Account could be ₹90 Crore whereas their Share Capital
would be 30x10 lakhs = ₹3 Crores.
vii.Secondly the participating Industry unit brings in Ethical Assets in a
similar manner. In case of VNKC the participating Industry Unit with
HACCP, HARPC, Fairtrade, CoBP- Code of Business Principles the
Ethical Assets Premium Account could be ₹4 Crores.
viii.These 30 FPOs under GujPro can deal with several Industrial Units
as VNKC totalling say 30 units in different commodities, then the
collective Industry Ethical Assets Premium Account could reach 4x30
= ₹ 120 Crores. Together the Ethical Assets Premium Account for the
lot connected to 40,000 Farmers could be 90+120= ₹ 210 Crores.
ix. The ₹90 Crore in Ethical Assets Premium Account signiﬁes the FPC’s
strength in all its operations. More importantly the individuals
working there as a team is ready to take on any venture - shall we
call it a Balakot Team?
x. This Ethical Assets Premium Account is an earned entry based on the
usage of Policies such as UNCAC.

3. Audit Profession - where is the slot, in Corporate Atomic Structure?
3. In my book , Corporate is structured2
as per the Laws of Nature. Policies, the
Proton of the Corporate Atomic
Structure is the Board, Practices, the
Electron is the nerve centre of Action
Process headed by CEO and Society
the Neutron is the stabiliser. Policies
and Society form a nucleus as Protons
and Neutrons. Practices spin around
the Nucleus as Electron does.
i.In the Atomic Structure Electron spins
around the nucleus at a high speed,
nearly 3/4th of the speed of light.
Society does not change the identity of Corporate but adds mass to it,
as much as Neutron does not inﬂuence the identity of atom but adds
mass to it. Unknowingly to others the Society enters into Corporate
and sits in every action as well as inaction of each person within a
company, just as neutron does. The Society forming part of the
Nucleus with The Board of Directors is the stabiliser and controls the
fast moving CEO and the team.
ii. When CEO spins too fast the company concerned drops into a black
hole, losing all the energy from within. If one takes the example of
IL&FS and apply this principle, Ravi Parthasarathy headed a team that
went off tangent too fast, away from the Nucleus. The Board failed to
come out with Policies that could have put a barrier for the easy spin
by Ravi’s team. The Society was not sitting and looking at what is
happening but participated in the nexus, facilitated the
mismanagement of corporate affairs willingly.
iii. The Society is the stabiliser of the Corporate Atomic Structure, with
laws and regulations built in, with Regulatory Authorities keeping a
vigil. But there’s only one whose visibility is paramount. That is the
Audit Profession. None else. McKinsey and Bains can come and
walk freely and go away but not the Auditors.
Return on Intangible: Measuring Corporate Fiscal and Ethical Assets; CREAM Analytics of Policies, Practices2
and People

iv. Intangible Asset that degraded the Audit Profession: Asset is subject
to depreciation and limited to a specific period whereas Intangible is
not. Intangible Asset is an oxymoron. My book covers this
Accounting Standard IAS 38 from the Exposure Draft stage. IAS 38
defines all the terms such as useful life, asset, amortisation etc.
excepting one, named ‘intangible’. Even today Intangible is not
defined. By bringing Intangible Asset into the Balance Sheet
Corporate that had been fighting for brand value, IPR etc. got the
upper hand in deciding how their Balance Sheet would be like. I
refer this as G-R-A-C-E 1 and 2 in my book that I summarise
Annexure 4:
v. To quote one conference paper : Nakamura estimated the value of3
U.S. gross investments in intangibles in 2000 to be at least $1 trillion
annually. Corrado and Hulten (2010) estimate that in 2007, by
omitting investments in intangibles, $4.1 trillion was excluded from
published national accounts data in the United States.
vi. The same conference Paper, it was noted what many companies
expressed: “In fact, it is not clear that the so-called GAAP standard is
even particularly meaningful anymore: companies continue to search
for beneficial ways in which to disclose information about themselves
with or without formal sanction.”
vii. The desire to include Brand value from the year 1985 had forced the
Accounting Body to bring in Intangible Asset as IAS 38. Intangible
Asset is the one that has no numerator nor denominator. It is a
singular item that brought disaster to the Audit and Accounting
Profession, allowing to state GAAP standard is even particularly
meaningful anymore.
viii. Audit profession has the pivotal position in Corporate Atomic
Structure. Banning individual Firms have no value, CA Firms as a
whole need to be strengthened. They are the only entities that
respond to undertaking Ethical Responsibility.
“New Building Blocks for Jobs and Economic Growth – May 16th-17th 2011 – sponsored by OECD, Athena3 3
Alliance, Kauffman, The Conference Board, McDonough School of Business of Georgetown University and the
National Academics’.

4. Recommendation
1. CREAM Report for each entity must be prepared. When you see the Model
CREAM Report as per Annexure 5.1, 5.2 and 5.3. Audit Profession shall
surely be strengthened and likes of Ravi Parthasarathy could never float
among us. G-R-A-C-E: Governance, Responsibility, Authority, Credibility
and Enablement shall be restored on the profession.
i. Companies shall note, by adopting Atomic Structure that we find the
particles are the same everywhere and they are governed by quite simple
laws that we can write down and express mathematically, and same is
applied to Corporate Atomic Structure benefiting Corporate Growth and
Profits. Action and Inaction is expressed mathematically by Return on
Intangible.
ii. Enables by the most powerful Benchmarks and Metrics for Corporate.
iii. What is crucial for Corporate, to bring the abstractions into reality,
acknowledge value where value is due, and deconstruct what is
valueless. Chapter 2 of my book is Who are YOU? If Industry could focus
on growth dropping Corruption as a means of growth, it could tap the
capability of people within $5 Trillion Indian Economy could be
achieved in much much lesser time.
iv. Corporate should establish Long-term Growth Rate by CAGR and apply
CDGR and CDRR - Daily Growth and reduction Rate for Corporate
Performance. Enabled by IBCM - Inactivity Based Cost Management ,4
preparing an Index of Inactivity on a continuous basis. The main
Principle behind IBCM is: “Activity has a Cost Incidence whereas
Inactivity a Cost Consequence - Measure Cost Consequence, Now, Now,
Now”
2. Ethical Assets Premium Account be credited and the Auditors shall certify
the calculation. This account will have a significant impact on the public
reporting. Not by the speculative market but by assessing the efforts put in
by a team, as to companies that are smart and capable to move forward
with a target of $5 Trillion Indian Economy.
3. $5 Trillion Indian Economy depends on Ethical Assets Premium Account
running.
Copyright Details: Inactivity Based Cost Management - Copyright © REGN. NO. L- 27490/2006 DATED4
December 1, 2006 Govt. of India, Copyrights Office, by the Author, Jayaraman Rajah Iyer,

4. There is a need to empower a CA in Industry with statutory Powers, as much
as we give to a Statutory Auditor. Annexure 6.
i. The onus is on GoI to initiate such powers that are needed to the Audit
Profession that they remain as the Chowkidar of the Society. A Regulator
for a Chowkidar is uncalled for?
A note about myself is by Annexure 7:
Yours Truly,
_____________________________
Jayaraman Rajah Iyer
cc. Honorable Finance Minister Smt Nirmala Sitharama
cc: President ICAI via CA Kamlesh Saboo Regional Council Member, WIRC,
Thane

Annexure 1

Annexure 2:
ONE PAGE REPORT - Project FISCAL5
Rating: FARMER- INDUSTRY - SOCIETY & CONSOLIDATE - AGRI -
LEADERSHIP
Return On Intangible
5. Connecting the Value Chain:
i. Gross Value Added By Agriculture and Allied Sectors is $274.23 billion at
constant 2011-12 prices at the CAGR of 2.75%. In 2018-19 Rabi Area
Sown is 28.9 mn hectares and Kharif Area Sown 101.50 mn hectares
covering Wheat, Rice, Pulses, Coarse Cereals, Oil Seeds, Sugarcane, Jute
& Mesta . Plunging into the sea of statistics, at the most we can wait for6
the next wave as to how the statistics produced later is better or worse
than what we see now. What we see now is again old and with several
provisos of several asterisks? Plainly speaking it is nothing but statistics.
ii. We shall create a robust pro-active Info-System, not just the Quantitative
Statistics but Qualitative Elements of Value-System practiced. Measure of
Value System by Return on Intangible shall provide good analytics to
effectively and instantly create policy changes and establish preventive-
action, by each Farmer. Yes, repeat by each Farmer.
iii.Project FISCAL connects Farmer - Industry - Society the three CCP -
Critical Control Points in the Value Chain, Consolidating Agri Leadership in
Indian Economy. It’s a single powerful sector giving the platform to
stabilise multi-functional aspects of GDP. When Agri is strong, GDP of $5
trillion becomes a feasible target for India.
iv. 1. GujPro Agribusiness Consortium Producer Company Ltd. Ahmedabad
is chosen for Project FISCAL. GujPro with 30 FPOs connected to 40,000
Farmers would be of a sizeable unit to start with. 2. Kunal Kotecha an
Industrialist running VNKC Agrocom Private Limited is the key stakeholder
in this Project FISCAL. Produce from GujPro procured under speciﬁc buy-
back arrangement will be converted to packed commodities from his own
factory as well as outsourced food packaging units. VNKC is already
certiﬁed unit for HACCP, Fairtrade Regulations. 3. Several kiosks all over
India would be opened for distribution of branded packed commodities
procured from Farmers/FPOs/FPCs.
As published: http://bit.ly/2xV97td5
https://www.ibef.org/industry/agriculture-india.aspx6

v. One major FPC from South India and an agro-biz unit from Dubai, the
best start-up awardee 2018 from UAE is another unit connected to several
farmers from Kerala with the three CCPs well established, are earmarked
for Project FISCAL. There are thousands of such FPCs in India that Project
FISCAL would establish the necessary Monitoring System of Growth,
development as viable commercial units mutually beneﬁcial to the three
CCPs. Project FISCAL shall cover eventually all registered FPCs.
vi.CREAM Report established by each CCP brings out the Daily pro-active
management system.
2. Personal touch to individual Farmers:
i. In a recent interview PM Modi addressed the Qn: Are loan waivers a
means to get rid of poverty? Modi said: In our roadmap to ensure that
farmers’ incomes double by 2022, the welfare of the small and marginal
farmers is extremely important. Without improving the conditions of 12
crore such farmers, how can our agriculture sector develop? They need
income support to ensure some stability in their lives.
ii. As of now FPOs, FPCs are well structured and accommodate millions of
Farmers. This structure is quite encouraging to address the issues raised by
the PM. One FPC earmarked for Project Fiscal states under ‘Activities
Proposed’: Develop a grand alliance with all grass root level farmer
collectives to promote ‘crop clusters’ for large scale handling of the
produces / products. It says NGOs helped so far Development but now
commercial aspects have to be brought in. Project FISCAL is set to fulﬁl
the agri Commerce sans the middlemen?
3. Bottom-up build up ratings of Farmers, FPOs, FPCs
i. Project Fiscal is based on IBCM - Inactivity Based Cost Management -
Activity has a cost incidence, whereas Inactivity,
a cost Consequence. Measure Cost Consequence
Now, Now, Now. Farmers ops and woes are
addressed instantly. How?
ii.CREAM Report is prepared for each of
the three CCPs under Project FISCAL.
IBCM with active participation of the
consortium of FPCs would establish the set
criteria of 1. FARMER CREAM Report; 2.
For Industry CREAM Report and 3. the end

users of produce and products via kiosks or e-commerce CREAM Report,
enabling Qualitative aspects of Value Chain MEASURED, RATED and
TRACKED. Intangible the denominator is the energy factor of individuals in
each CCP.
iii. The Value System of a Farmer is very good and he is a willing partner. The
Industry has to match their good intentions. Management Quality comprising
of variety of Policies and Standards - Food Certiﬁcations - would be applied
to individual Farmers and Corporate Governance of the same is tracked.
Through the FPCs, GujPro for example, accounting quality is ensured. Buy-
back arrangements towards produce/product/kiosks/e-commerce are
established. Similarly Risk Management is strictly itemised and tracked.
4. CAGR, CARR -2025 converted to CDGR, CDRR respectively. 4.1 CREAM
Report for Corporate consists of 200 different Process Blocks. Project Fiscal
would also have as many by-and-by to ensure Quality Assurance. 4.2 CAGR is a
Dream Target whereas CARR is weeding out the valueless. D in CDGR and
CDRR is Daily - Growth Rate and Reduction Rate.
5. Demonstrated growth: Just-in-Time, Personal touch to individual Farmers,
bottom-up build up ratings of Farmers, FPOs, FPCs, B2B - B2C, Empathy, at the
same time commitment to Quality Produce ensure Demonstrated growth.
CREAM Report of 45k Farmers connected to Industry and Public would
enhance a win-win situation within this Value Chain to Funding Agencies to the
GoI. Pro-active policy changes and commitment forward is to each individual,
produce, area and time, in Project FISCAL.

Annexure 3: bottom-up Rating System

Annexure 4: G-R-A-C-E 1 and 2
GRACE 1
Trend of 1977 and the Role of IASC
GRACE 2
the trend during this period:1995 -
Intangible Asset
GOVERNANCE
IAS 9 stood by the pressure,
the instrument by which
Governance could be
administered by Audit
profession:
It was a commendable role
IASC had played over the
years that one instrument -
Balance Sheet had come to
be relied upon as the most
reliable record of activities
transacted by individual
companies globally.
Audit profession lost their
control of Governance
over Accounting Standard on
account of IAS 38
published without the title
word being deﬁned.
RESPONSIBILITY
Peat, Marwick, Mitchell
undertook the responsibility
of clearing their name by
appointing Arthur Young
for the peer review of their
Auditing practices.
The big 4 ﬁrms had meekly
said to OECD - It is
management‘s responsibility,
with the oversight of those
charged with Governance.
Shirking the responsibility
has got a good excuse.

AUTHORITY
Industry was made aware
that they had no other
recourse than to get the
approval from the
professional accounting
bodies through published
accounting standards for any
inclusion on change of
Balance Sheet items.
Meaning a journal entry at
corporate level needed a
prior approval from the
accounting governing body.
Governance was at its best.
The industries looking for
approval for capitalisation of
R&D costs, be it aerospace,
pharmaceuticals,
automobile, hardware, were
all for an end product that
was a tangible item.
Accounting ﬁrms armed with
IAS 9 would have no
difﬁculty to verify the
product as well the costs
related to the R&D
capitalisation. IAS 9 emerged
after due diligence.
From 1988 industry tried to
rule over the Balance
Sheet, that Audit profession
lost its hold on account
of IAS 38 - this led to in
2007, by omitting
investments in intangibles,
$4.1 trillion was excluded
from published national
accounts data in the United
States. Audit profession had
become irrelevant.
GRACE 1
GRACE 2
Intangible Asset

CREDIBILITY
Arthur Young another major
auditing firm had the
credibility from the Society,
as Accounting firms were
scrutinised as to their
auditing practices after
several scandals erupted
during that time.
In 1977 Peat, Marwick,
Mitchell had taken the
responsibility and called
upon another major firm
Arthur Young to conduct a
peer review of their
Auditing.
Today it has become the story
of “He that is without
sin among you, let him first
cast a stone at her.”
Audit profession after IAS 38
has lost its credibility
allowing ‘management’ to
decide on the journal entries.
ENABLER Balance Sheet was an
enabled instrument.
Erosion of Balance Sheet
There was no hole in the
Balance Sheet in 1977
while in 1998 onwards
craters have become a
normality. Is not $4.1
trillion a crater though?
Audit profession had lost
its identity.
GRACE 1
GRACE 2
Intangible Asset

Annexure 5.1 CREAM Report: By Process Area
[Stage Reached Legend: 0 - Non-Existent/Insentient; 1- Conceptual; 2- Communication; 3-Formation; 4-
Formulation; 5-Substance of Quality/Task Accomplishment]: [A] - Active;]
Index of Inactivity by Process Area identiﬁes the Inactive Quantitative and
Qualitative Elements of Management. The same by Resource Area identiﬁes
by Individuals to whom Tasks were entrusted and how they performed. Both
should tally. 
CREAM Report
INDEX OF INACTIVITY
By Process Area
2007 2008-
09
2009-
10
2010-
11
2011
-12
2012
-13
2013
-14
2014
-15
Corporate Governance[19] -
[A]
300 300 300 350 350 350 350 350
- [Inactive] 175 175 175 125 125 125 125 125
- [Inactive %] 36.84% 36.84% 36.84% 26.32% 26.32%26.32%26.32% 26.32%
Internal Controls And Risk
Management [7] -[A]
121 121 121 121 121 121 121 121
- [Inactive] 54 54 54 54 54 54 54 54
- [Inactive %] 30.86% 30.86% 30.86% 30.86% 30.86%30.86%30.86% 30.86%
Earnings - P&L - B-S: [12] -[A] 110 118 134 114 186 114 86 138
- [Inactive] 190 182 166 186 114 186 214 162
- [Inactive %] 63.33% 60.67% 55.33% 62.00% 38.00%62.00%71.33% 54.00%
Accounting. Quality: [16] -[A] 198 146 190 158 202 198 146 162
- [Inactive] 202 254 210 242 198 202 254 238
- [Inactive %] 50.50% 63.50% 52.50% 60.50% 49.50%50.50%63.50% 59.50%
Management Quality: [116] -
[A]
1635 1635 1635 1652 1657 1698 1698 1698
- [Inactive] 815 815 815 798 793 752 752 752
- [Inactive %] 33.27% 33.27% 33.27% 32.57% 32.37%30.69%30.69% 30.69%
CREAM Report: [170] -[A] 2364 2320 2380 2395 2516 2481 2401 2469
- [Inactive] 1436 1480 1420 1405 1284 1319 1399 1331
- [Inactive %] 37.79% 38.95% 37.37% 36.97% 33.79%34.71%36.82% 35.03%
Net Rating/ Stage Reached 2 2 2 2 3 2 2 2

Annexure 5.2: CREAM Report: By Resource Area
These Ratings will have direct consequence to Ethical Assets Premium Account.
Out of the 170 Process Blocks only 12 are related to P&L and Balance Sheet,
meaning 158 Process Blocks are not being measured. The Analytics would
encompass many such things like Conflict of Interest, Conflict of Personal
Interest, Conflict of Conscience,
CREAM Report
INDEX OF INACTIVITY
By Resource Area
2007 2008-
09
2009-
10
2010-
11
2011-
12
2012-
13
2013-
14
2014
-15
1. ER Force [A] 290 290 290 301 305 314 314 314
- [Inactive] 470 470 470 459 455 446 446 446
- [Inactive %] 12.37% 12.37% 12.37% 12.08% 11.97%11.73%11.73%11.73%
2. FR Managerial Force [A] 519 508 523 524 553 542 522 539
- [Inactive] 241 252 237 236 207 218 238 221
- [Inactive %] 6.35% 6.64% 6.25% 6.22% 5.45% 5.74% 6.27% 5.82%
3. FR - Operating Force [A] 519 508 523 524 553 542 522 539
- [Inactive] 241 252 237 236 207 218 238 221
- [Inactive %] 6.35% 6.64% 6.25% 6.22% 5.45% 5.74% 6.27% 5.82%
4. FR: Technology [A] 519 508 523 524 553 542 522 539
- [Inactive] 241 252 237 236 207 218 238 221
- [Inactive %] 6.35% 6.64% 6.25% 6.22% 5.45% 5.74% 6.27% 5.82%
5. FR: Finance, HR.. [A} 519 507 523 524 553 542 522 539
- [Inactive] 241 252 237 236 207 218 238 221
- [Inactive %] 6.35% 6.66% 6.25% 6.22% 5.45% 5.74% 6.27% 5.82%
CREAM Report: ER + FR [A] 2364 2320 2380 2395 2516 2481 2401 2469
- [Inactive] 1436 1480 1420 1405 1284 1319 1399 1331
- [Inactive %] 37.78% 38.96% 37.36% 36.97% 33.78%34.70%36.81%35.02%
Net Rating/ Stage Reached 2 2 2 2 3 2 2 2

Annexure 5.3 CREAM Report Framework

Annexure 6
A week after I was appointed by The Wellcome Foundation, UK, Keith Gay Asia
Africa Divisional Manager ﬂown in to Lagos where I had already started my
work. Nasim Khwaja the then MD, who was earlier CMD of Burroughs
Wellcome Pakistan called me in. He asked me straight was there any problem

with WIMCO. I said I didn’t but they had aplenty from me. Asked for details I
explained what happened including Price Waterhouse Peat & Co gave me no
chance to present my case, fater nearly 9 months of Investigation by their Team.
I was given a 3 months notice and then I had to go out of India.
Nasim said Senior Vice-President of WIMCO, one Mr. RK Kutty wrote to The
Wellcome Foundation on their request for reference that Jayaraman made some
baseless allegations against the MD of WIMCO and that he should not be
employed’.
I asked Nasim, ‘do I get out of the door I came in for good?’ No Nasim Khwaja
said, Honesty and Integrity are most appreciated in Wellcome and that you
shall stay here as long as you wish.
1. Like me there are thousands of CAs in our midst. The point is no need to
take any risk, like I did. Given the right statutory powers to CAs likes of Ravi
Parthasarathy would never arise.
2. There are not many like Nasim Khwaja, himself an MD to induct a CA who
could be tough. That’s the upbringing of The Wellcome Foundation a great
outﬁt. Companies particularly ownership ones should study how The
Wellcome Foundation was formed and taken forward. The Wellcome Trust
has about $40 billion focusing on Medical Research.
3. Maybe I am an exception as the only person to have joined an International
company with a negative reference. HR guys must read my book, where I
had made just a passing remark about myself but refer to one Pettis case.
This case later triggered to conduct a Conference led by Ralph Nader on
Whistleblowing. I had read about Pettis case before I submitted my Internal
Auditor Report to Swedish Match Company. 

Annexure 7:
Author
Jayaraman Rajah Iyer, Chartered Accountant (ICAI, New
Delhi,1966) has a unique insight into major changes in
accounting culled from experience with firms across the
globe. He interned at Hindustan Lever (1966) and held
key positions at API and Mafatlals. As Forestry Operations
Accountant at Wimco (1972) he introduced 'Likely
Ultimate Cost’.
In 1977 he was General Manager of ITI, Nigeria, Lagos. Sir William Castell
who later became the Chairman of the Wellcome Trust, selected him to join The
Wellcome Foundation, UK specifically to set right the dysfunctional accounting
at Wellcome, Nigeria. During the 1990s he was engaged in corporate
consulting. He had been visiting faculty at SIES School of Management where
he taught Balanced Scorecard and Strategic Cost Management based on the
Proprietary IBCM (copyright (c) Jayaraman Iyer Inactivity Based Cost
Management, 2006). He has been a crusader against corruption and business
malpractice all through his life. He lives with his wife in Thane and alternately
Kodaikanal. He has three children and three grand ones too.
His mission is to convert corporate to adopt Return on Intangible for
accelerating growth and profits. He believes utilisation of men and women
employed as of now, amounts to nothing, knowing their amazing capabilities
which is immense. Intangible is a power house when triggered would bring
prosperity and happiness to all around. Value System is crucial to bring the
abstractions into reality, acknowledge value where value is due, and
deconstruct what is valueless. A Sustainable Value System within corporate
would bring in sustainable profits he avers. A well managed corporate will have
no chance of getting muddled with NPAs and interest defaults. For this Return
on Intangible is the only solution, he emphasises. His call for Change, Change,
Change Corporate, Change Government, Change the Denominator is to create
a society of prosperous and happy body of able people to confront the
undesirable elements within. India’s culture should be carried forward, forever
as it is Intangible, he says.
Contact: jayar@ibcm.in, Mobile: +919487390439

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